The Allkem Ltd (ASX: AKE) share price has found itself in the unloved basket in Monday afternoon trading.

As we march toward the close, shares in the lithium miner are contending with a 5.4% fall. This move takes the global materials company’s share price to $14.05. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is struggling with its own 1.6% bashing today.

Let’s take a look at what might sapping Allkem of its excitement.

Nowhere to hide amid concern

Although the field has improved this afternoon, the broad Australian share market is still in a nervous state. At the time of writing, the materials portion of the Aussie index is nursing a deep 4.4% wound as investors flock to an exit.

Oddly enough, the usual suspects of exaggerated selling — such as the tech and consumer discretionary sectors — are in the green. Whereas, the prolonged commodity euphoria is taking a back seat and cooling off.

The Allkem share price, along with many others, is failing to receive support amid deepening economic fears. A combination of persistent inflation and a hobbled Chinese economy is putting the prospects of a recession front of mind for investors today.

Consequently, money is draining out of energy and commodity investments. If economic conditions worsen, it is likely that commodities and oil will take a hit from reduced demand.

Last week, analysts at investment bank Barrenjoey shared their forecast of a ‘probable’ recession. While the team highlighted it would probably be short, many investors are choosing not to hang around to find out.

Could the Allkem share price be attractive?

Where there is a seller, there’s a buyer… and with over 2.6 million Allkem shares changing hands today, some investors are deciding to load up.

While we can only speculate, one fundie that might be making the most of the Allkem share price today could be Wilsons. Recently, the private wealth manager named Allkem as its “preferred” exposure to the lithium sector.

Specifically, the team at Wilsons believes there could be more earnings upside for the lithium player. If that were to be, today’s valuation could end up looking attractive.

The Allkem share price has rallied 28% since the beginning of 2022. This is roughly on par with other lithium names such as Pilbara Minerals Ltd (ASX: PLS) so far this year.

The post Why is the Allkem share price dumping 5% today? appeared first on The Motley Fool Australia.

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More reading

• Our 4 favourite lithium ASX shares right now: Wilsons
• 2 stellar ASX growth shares that experts say are buys
• Allkem share price sinks 5% amid Mexico lithium deposit speculation
• Here’s which ASX lithium shares investors have been loading up on this month
• Why is the Sayona Mining share price in the doldrums this week?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Retiring into a potential recession isn’t what anyone would want, but there are ways to maintain some control over your portfolio in times of economic decline. Making some big-picture adjustments to your investments in the years leading up to retirement can pay big dividends down the line, all while creating additional security for your spending plan. 

Let’s think further about how you can protect yourself if you’re feeling some anxiety leading into your senior years.

The threat of sequence risk

The goal for most people during their working careers is to accumulate wealth. In the years leading up to retirement, the goal tends to center around preserving wealth.

Since we can reasonably estimate that the economy could be headed for some difficult years, modifying your strategy going into retirement is even more necessary. Further, given the vast number of variables that go into retirement planning (i.e., how long you think you’ll live, how much you expect to spend, etc.), it’s important to create certainty around money to the extent possible. 

One of the less commonly discussed topics in retirement planning is sequence risk (sometimes called “sequence-of-returns risk”). Put simply, sequence risk is the potential for running into a poor string of returns in the years after you stop working, which can then lead to portfolio failure in the long run.

In other words, if you experience steep portfolio declines in the early years of retirement — when you’ve already started drawing on the money to cover living expenses — you run a higher risk of running out of money than if you were to retire into a bull market. 

Addressing sequence risk

For example, say you maintained an 80% stock/20% bond asset allocation throughout your working career. Given the raging bull market of the 2010s, this allocation performed particularly well.

However, if retirement is on the horizon, you might think about briefly moving to a 20% stock/80% bond asset allocation. Rethinking your asset allocation can help shield against the threat of poor returns in the early years of retirement, which present a substantial threat to retirement success. 

The easiest way to go about handling sequence risk is by increasing your share of lower-risk investments (like bonds and cash), relative to stocks. As 2022 has shown us thus far, bonds are not entirely risk free, but they do generally come with a lower risk of extreme drawdown — especially relative to stock investments. Even though you might not get big returns out of bonds, they do exist as a valuable risk-control measure that offer at least some diversification benefit. 

A numerical example

Say you started your retirement in 2022 with a $500,000 portfolio and an 80% stock/20% bond asset allocation. After the stock market lost 20% and the bond market lost 10%, you’d be left with $410,000. From there, you’d have to withdraw money for expenses, which could have a deleterious effect on the long-run viability of your portfolio. 

In an alternative world, imagine you started with the same $500,000 portfolio but a more conservative 20% stock/80% bond asset allocation. In this example, after the stock market again lost 20% and the bond market lost 10%, you’d be left with $440,000. This is still a loss, but an improvement from the riskier portfolio used in the first scenario. 

While this is by no means a way to shield your portfolio completely, it does provide some cushion in the event stocks continue their slide for the next few years.

Retiring isn’t easy but possible

The reality remains that retirement is a financially challenging milestone for the grand majority of workers. But between Social Security, personal savings, and (increasingly) active income, retirement is absolutely achievable.

As you get closer to retirement, consider the risks at hand and the magnitude of stock market loss you’d be willing to tolerate. From there, adjust your overall asset allocation as necessary, but also be sure to keep a healthy cash reserve on hand. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post How to think about risky stocks when you’re approaching retirement appeared first on The Motley Fool Australia.

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More reading

• Why is the Allkem share price dumping 5% today?
• Qantas share price follows ASX 200 lower despite Jetstar CEO news
• Firefinch share price remains suspended following cancelled cap raise
• Guess which ASX lithium share is exploding 88% higher on a deal with EV maker Nio
• Why changes could be afoot for ASX dividend shares and franking credits

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Qantas Airways Limited (ASX: QAN) share price is descending with the market on Monday.

In afternoon trade, the airline operator’s shares are down 1.5% to $5.06.

What’s going on with the Qantas share price?

The Qantas share price is trading lower on Monday after being caught up in a broad market selloff.

Concerns that rising interest rates could cause a global recession has seen the ASX 200 index tumble 1.3% today.

Not even the release of a positive announcement has been able to keep the Qantas share price in positive territory.

What was announced?

This morning Qantas revealed that it has appointed Stephanie Tully as the new CEO of Jetstar.

Tully will replace current Jetstar CEO, Gareth Evans, when he leaves his role by the end of the calendar year.

The new Jetstar leader has been hired from within. She joined Qantas in 2004 and has worked across operational, commercial, marketing, and customer loyalty functions in progressively more senior roles.

Most recently, Tully has been a group executive and the company’s chief customer officer.

In light of her appointment, Markus Svensson will be promoted to the chief customer officer role and become a member of the group executive committee, reporting to the group CEO, Alan Joyce.

Mr Joyce commented:

These appointments come at an important time for us. The team is working incredibly hard to overcome challenges facing the whole industry as it gets back on its feet, and the data shows we’re almost there.

Managing this kind of executive renewal internally means we keep our momentum and can leverage a huge amount of corporate knowledge, including through the transition. Stephanie has worked across several different parts of the airline, from crewing to marketing, and has a deep understanding of customer experience. She’s an outstanding leader and she’ll be leading a very experienced senior team at Jetstar to keep building on the strengths of that business.

The post Qantas share price follows ASX 200 lower despite Jetstar CEO news appeared first on The Motley Fool Australia.

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• Why is the Qantas share price flying higher than the ASX 200 this month?
• Qantas share price dips despite performance lift
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• How this fundie is beating the ASX 300 without fossil fuels
• Qantas share price lifts 3% following Wednesday’s rout

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Firefinch Ltd (ASX: FFX) share price continues to remain in a trading halt today.

This follows a new market announcement from the gold miner and lithium developer during midday trade.

Currently, Firefinch shares remain frozen at 20 cents apiece.

Firefinch provides update on placement

According to the company’s update, Firefinch advised it has decided not to complete a proposed $90 million placement.

A broader recapitalisation package was announced last week in which the company was seeking to acquire funds from relevant stakeholders.

Firefinch wanted to fund the Morila Stage 1 and 2 production plan as well as provide working capital through to 2024.

However, taking into account the recent downward movements in the gold price and unfavourable US: AUD currency movements, the company has put its plans on ice.

As a result, Firefinch and the joint lead managers are now considering alternative funding options.

This includes undertaking further assessment of its funding requirements to successfully execute its medium-term production plan.

In addition to the placement, there was going to be a $10 million non-underwritten share purchase plan (SPP).

The price was to be listed at the same offer as the placement at six cents apiece.

Although, it doesn’t look like this will be going ahead anytime soon as the placement has been put aside.

Firefinch share price review

After tracking higher from the start of 2021 until June this year, Firefinch shares were up almost 500%.

But in late May/early June, the company’s shares saw their value wiped off the ASX with the share hitting 20 cents apiece.

Based on today’s price, Firefinch has a market capitalisation of approximately $236.25 million with 1.18 billion shares outstanding.

The post Firefinch share price remains suspended following cancelled cap raise appeared first on The Motley Fool Australia.

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More reading

• What’s happening with the Firefinch share price?
• Firefinch share price remains on ice following key ex-BHP hire

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The market may be a sea of red on Monday but that hasn’t stopped the Greenwing Resources Ltd (ASX: GW1) share price from shooting higher.

In morning trade, the lithium explorer’s shares were up as much as 88% to 46 cents.

The Greenwing Resources share price has since eased back but remains up 49% to 36.5 cents.

Why is the Greenwing Resources share price rocketing higher?

Investors have been bidding the Greenwing Resources share price higher today after the company announced a deal with electric vehicle company Nio.

According to the release, Nio has agreed to pay $12 million to Greenwing to subscribe for 21,818,182 shares at an issue price of 55 cents per share. This will give Nio a shareholding in the company of approximately 12.16%.

Management advised that the deal will help accelerate its exploration program at San Jorge Lithium Project.

What else?

In addition, the automaker has a call option to acquire between 20% to 40% of the issued capital of the Andes Litio business, which holds rights over the San Jorge Lithium Project in Argentina.

The call option is exercisable within 365 days after a JORC report for the San Jorge Lithium Project has been issued or obtained. And depending on the outcome of the report, the Nio call option will have an exercise price of between US$40 million and US$80 million.

Furthermore, once the call option has been exercised, Nio will have direct rights to offtake production in the San Jorge Lithium Project. And subject to shareholder approval, it will also have the right to match any offer to purchase the remaining offtake share.

Management advised that it has agreed to ensure that a JORC report on the San Jorge Lithium Project is issued by 31 December 2023.

The post Guess which ASX lithium share is exploding 88% higher on a deal with EV maker Nio appeared first on The Motley Fool Australia.

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More reading

• Why changes could be afoot for ASX dividend shares and franking credits
• Not all ASX 200 shares are getting hammered today. Here are some winners
• This stock market investment strategy made money 100% of the time over the last century
• Is the Mineral Resources share price a buy right now?
• These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX dividend share investors might be in for a rude shock as the federal government is looking to claw back some of the past franking credits from investors through their ASX dividend shareholdings.

The proposed law will prevent ASX companies from paying franking credits if the dividends are funded by capital raisings.

Franking credit curse taints some ASX dividend shares

What’s more alarming is that the new rule will be applied retrospectively. This means investors and superfunds may have to repay the franking from 2016 onwards.

The new rule, which is open for consultation, could effectively kill off the payment of special dividends.

Which ASX dividend paying companies are affected

A company is deemed to be funding dividends from a capital raising if the distribution is not consistent with its established practice of making such payouts on a regular basis.

The entity will also have to have undertaken a capital raising before (that means almost every ASX share) and that it’s clear that the raise would fund all or part of the distribution or if the company raised capital for the purpose of funding all or part of the distribution.

The government claims the move is to close a loophole that allows companies to release excess franking credits that exceed the profits they make in a given period.

Closing a franking credit loophole but opening a tax hole

Companies like Harvey Norman Holdings Limited (ASX: HVN) have used the so-called loophole in the past to release excess franking credits to shareholders. The retailer paid a fully-franked special dividend and launched a capital raise to fund the payment.

The move is bound to create angst among shareholders. It could leave them on the hook to repay thousands in franking credits that they have received over the past five years.

What’s surprising is that the federal Labor government won’t be saving much through this controversial change. It’s estimated that the franking clawback will save treasury around $10 million a year.

It seems like a risky gamble for the Albanese government for not much return. Who can forget the last time federal Labor tried to mess with franking credits? That, along with other proposed radical changes, cost Bill Shorten his shot at the Lodge.

What kind of capital returns are affected?

Regular dividends are unaffected and ASX dividend shares can still pay special dividends but without franking.

This will significantly reduce the incentive to use special dividends as a means of returning surplus cash to shareholders.

It is unclear at this point if off-market share buybacks will also be affected. These sorts of capital management programs have a “capital component” and a “dividend component” to the offer price. Franking credits are usually attached to the dividend component.

It reads to me that off-market buybacks could be impacted as the dividend part of the offer meets the conditions of the new rule.

You can voice your concerns to the government during the consultation period (until 5th Oct). Instructions can be found on this link.

The post Why changes could be afoot for ASX dividend shares and franking credits appeared first on The Motley Fool Australia.

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More reading

• Not all ASX 200 shares are getting hammered today. Here are some winners
• This stock market investment strategy made money 100% of the time over the last century
• Is the Mineral Resources share price a buy right now?
• These are the 10 most shorted ASX shares
• Why is the Whitehaven share price wilting 10% on Monday?

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is suffering a major sell-off on Monday, tumbling 1.41% at the time of writing. But not all ASX 200 shares are diving lower.

The market is struggling after a disastrous Friday on Wall Street that saw the Dow Jones Industrial Average Index (DJX: .DJI) plunge 1.6% and the S&P 500 Index (SP: .INX) fall 1.7%. The Nasdaq Composite Index (NASDAQ: .IXIC) was the worst hit, however, tumbling 1.8%.

Meanwhile, growing recession fears are seemingly weighing on the S&P/ASX 200 Materials Index (ASX: XMJ), dragging it 4.6% lower at the time of writing. The S&P/ASX 200 Energy Index (ASX: XEJ) also appears to be being dragged down 5.59% by such fears, in addition to falling oil prices.

But it’s not all dire on the Aussie bourse. Keep reading to find out which ASX 200 shares are bucking the broader trend to post notable gains on Monday.

These ASX 200 shares are posting decent gains on Monday

Despite a rough trade on the tech-heavy NASDAQ, the share price of ASX 200 tech icon Block Inc (ASX: SQ2) is taking off on Monday.

Stock in the owner of former market darling Afterpay has lifted 2.17% to trade at $86.03 right now. It marks the first session in which the payment services provider has posted a gain in a fortnight, with the stock currently trading 21% lower than it was two weeks ago.

The ResMed Inc (ASX: RMD) share price is also in the green today. It’s up 2.3% to $32.78 right now despite the company’s silence.

The ASX 200 healthcare giant has also had a rough trot as of late – its shares have fallen around 6% from the six-month peak it reached on 14 September.

And it’s not the only healthcare stock posting a gain today. The Cochlear Limited (ASX: COH) share price is up 1.9% to $200.30 right now.

Meanwhile, S&P/ASX 200 Consumer Staples Index (ASX: XSJ) stock Treasury Wine Estates Ltd (ASX: TWE) is lifting 1.3% today to trade at $12.71.

In a similar fashion to ResMed and Block before it, the Treasure Wines share price surged to an 18-month high of $13.68 earlier this month.

Finally, taking out the top spot on the ASX 200 right now is tech share Altium Limited (ASX: ALU). It’s gaining 4.1% right now to trade at $35.30.

Interestingly, there’s been no news from the company since it posted its full-year earnings last month. Though, its stock is still trading 17% higher than it was prior to its earnings release.

The post Not all ASX 200 shares are getting hammered today. Here are some winners appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares
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• Why Block, Brainchip, Domino’s, and Vulcan shares are sinking today
• Here’s why the Block share price is being smashed today
• Experts name 2 outstanding ASX 200 shares to buy right now

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Block, Inc., Cochlear Ltd., and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended Block, Inc. and ResMed Inc. The Motley Fool Australia has recommended Cochlear Ltd. and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Countless factors affect stock prices on a daily basis. Some are very broad like global events and macroeconomic trends. Others are more narrow: company-specific news or changes to analyst price targets. But all of those things affect investor sentiment to some degree, making it impossible to predict which direction a stock (or even the broad market) will move in the short term.

You may hear stories about day traders who made a fortune overnight. Well, some lucky people have also become millionaires by playing the lottery, but that doesn’t mean you should invest your money in lottery tickets. Several studies have shown the vast majority of day traders actually lose money, and the ones who manage to turn a profit often make less than minimum wage.

Put simply, the best way to make money in the stock market is a long-term investment strategy. For instance, the S&P 500 has produced a positive return 100% of the time over any 20-year window between 1919 and 2021, according to Crestmont Research. That means patient investors who held an S&P 500 index fund for at least two consecutive decades (at any point over the last century) always made money.

Here is one way to benefit from that information.

A simple way to make money in the stock market

The Vanguard S&P 500 ETF (NYSEMKT: IVOO) is a passively managed fund that tracks the performance of the S&P 500, which includes 500 of the largest U.S. companies. That may be less exciting than buying individual stocks, but there are several advantages to this strategy investors should consider.

First, the Vanguard S&P 500 ETF offers instant diversification across all 11 market sectors, and investors get exposure to some of the most valuable brands in the world. For instance, the top 20 holdings include industry-leading names like Apple, Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc.(NASDAQ: AMZN), The Home Depot, Inc.(NYSE: HD), Mastercard Incorporated(NYSE:MA), Visa Inc. (NYSE: V), UnitedHealth Group (NYSE: UNH), Johnson & Johnson (NYSE: JNJ), Tesla Corp Ltd (NASDAQ: TSLA), Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL), and ExxonMobil Corporation (NYSE: XOM).

Second, the Vanguard S&P 500 ETF is cheap and time-efficient. It bears an expense ratio of 0.03%, meaning investors would pay only $1.50 per year in fees on a $5,000 portfolio. Additionally, it requires very little work, because there is no need to research specific companies or stay up to date on financial results. Investors can simply buy the ETF and forget about it.

In short, while it may be boring, buying an S&P 500 index fund is a simple, inexpensive, and time-tested path to making money in the stock market. That’s why Warren Buffett has often advocated for this investment strategy.

Third, the Vanguard S&P 500 has generated a total return of 206% over the last decade, which is equivalent to an annualized return of 11.8%. At that pace, $100 invested on a weekly basis would grow into a $1 million portfolio in 28 years, and it would grow into a $2 million portfolio in 34 years.

How I manage my portfolio

An S&P 500 index fund does not have to be your only investment. Personally, I keep a certain percentage of my portfolio in the Vanguard S&P 500 ETF, but I also own dozens of individual growth stocks. I think of the S&P 500 index fund as a sort of safety net, a reliable money maker in the long run.

Of course, nothing is truly guaranteed when it comes to the stock market, but the S&P 500 has undeniably produced a positive return over every rolling 20-year period since 1919. And that knowledge makes me feel comfortable taking a little more risk with my other investments.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post This stock market investment strategy made money 100% of the time over the last century appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Trevor Jennewine has positions in Amazon, Mastercard, Tesla, Vanguard S&P 500 ETF, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Home Depot, Mastercard, Microsoft, Tesla, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and UnitedHealth Group and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Mastercard. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Mineral Resources Limited (ASX: MIN) share price may be suffering a battering today but it’s up across most of the significant long-term timeframes.

The ASX lithium share is currently down 5.14% to $64.16 apiece on Monday but Mineral Resources has certainly been a standout performer zooming out. Here are the numbers:

• 41.96% over the past year
• 315.93% over five years, and
• 5,832.46% since its shares hit the market in 2006

Investors might wonder two things about these figures: Is the Mineral Resource share price overvalued, and are its predicted fundamentals reflected in its current share price?

One broker believes the Mineral Resources share price might have reached its ceiling for now and that a speculated development “could create value”.

Let’s cover what else the broker said.

Mineral Resources receives a hold recommendation

Spotee Connect founder Elio D’Amato gave Mineral Resources a hold recommendation, as reported by The Bull. D’Amato said:

[Mineral Resources’s] shares soared to all-time highs on speculation the company may be considering spinning off its world-class lithium assets and potentially listing in the US. While a US listing won’t guarantee success, splitting its lithium and iron-ore operations into separate entities could create value. While nothing was certain on September 21, the market is excited by the prospect.

Analysts are bullish on lithium demerger

D’Amato is not alone in his analysis. Earlier this month, UBS said the Mineral Resource’s lithium business could be worth far more in the future. The broker gave Mineral Resources shares a price target of $83. That’s a possible upside of around 29% at the time of writing.

Wilson equity strategist Rob Crookston also agrees with the thesis a demerger could be good for the company. In a memo to clients last week, Crookston said:

A speculated NYSE spin-off of the lithium business could untap hidden value in the business.

Mineral Resources share price snapshot

Despite today’s losses, the Mineral Resources share price is up almost 15% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 13% over the same period.

The company’s market capitalisation is currently around $12.2 billion.

The post Is the Mineral Resources share price a buy right now? appeared first on The Motley Fool Australia.

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More reading

• Our 4 favourite lithium ASX shares right now: Wilsons
• These ASX 200 dividend shares just paid out. Here’s how much
• Own Mineral Resources shares? Your dividends are on the way
• Here are the top 10 ASX 200 shares today
• Mineral Resources share price up 5% as miners lead the market on Tuesday

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted share on the ASX after its short interest rose to 15.3%. Short sellers will have been pleased to see this travel agent’s shares hit a 52-week low today.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 14%. Once again, short sellers are winning with this one. This betting technology company’s shares dropped to a 52-week low today. Valuation concerns appear to be weighing on them during the market volatility.
• Block Inc (ASX: SQ2) has seen its short interest ease slightly to 10.3%. Weakness in the tech sector, concerns over the prospects of a global recession, and regulatory pressure in the BNPL industry have been putting pressure on its shares.
• Lake Resources N.L. (ASX: LKE) has short interest of 9.9%, which is flat week on week. This lithium share has fallen heavily this month due to market volatility and an ownership dispute with its partner Lilac Solutions.
• Megaport Ltd (ASX: MP1) has seen its short interest rise to 9.4%. This could be due to valuation concerns and significant weakness in the tech sector.
• Inghams Group Ltd (ASX: ING) is back in the top ten after its short interest rebounded to 8%. Concerns over higher input costs have been weighing on sentiment.
• Nanosonics Ltd (ASX: NAN) has short interest of 7.9%, which is down slightly week on week again. Short sellers appear to have been targeting this infection prevention company due to a disruptive business model change in the key US market.
• Breville Group Ltd (ASX: BRG) is a new entry in the top ten with short interest of 7.7%. One of Breville’s rivals recently warned that the uncertain economic backdrop could impact spending trends. It also highlighted ongoing supply chain pressures.
• Zip Co Ltd (ASX: ZIP) has seen its short interest reduce materially to 7.6%. This could be because this BNPL provider was kicked out of the ASX 200 index. Some fund managers can only invest in/short shares in the benchmark index.
• De Grey Mining Limited (ASX: DEG) has short interest of 7.5%, which is down week on week. Short sellers have been closing positions after this gold developer released a positive update on its Mallina Gold Project.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• Why the ‘outlook presents challenges’ for Zip shares: expert
• Why is the Lake Resources share price sinking 7% on Monday?
• 2 stellar ASX growth shares that experts say are buys
• Could this be good news for Flight Centre shares?
• Here’s which ASX lithium shares investors have been loading up on this month

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd, Block, Inc., MEGAPORT FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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